New Policy Conversion Rate
Percentage of quotations or proposals that convert into bound policies
What is New Policy Conversion Rate?
New policy conversion rate is the percentage of insurance quotations that result in a policy being taken out. It shows how well an insurer or broker turns quotes into business.
Quotes cost time and effort, so this rate shows how competitive and well-presented the offers are.
How this KPI is measured
- Function
- Sales
- Sub-function
- Policy Acquisition
- Industry
- Insurance
- Type
- Lagging
- Impact
- Revenue
- Unit
- %
- Measurement frequency
- Monthly / Quarterly
- Formula
- (New policies bound / Total quotations issued) × 100
How to calculate it
Divide new policies bound by total quotations issued, and multiply by 100.
For example, if a broker issued 1,000 quotes and 210 became policies, the rate is 21%.
Split by product, channel and customer type, and compare over a period long enough for quotes to convert.
Where it is used
Judging price competitiveness
See how often quotes win.
Improving the customer journey
Find where customers drop out.
Planning marketing
Estimate policies from quote volume.
How to improve it
Tips and common mistakes
- Price is not the only factor. Trust and service matter.
- Follow regulatory rules on presenting quotes and advice.
- Track lapse rates as well.
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